Dubai bourses testing new settlement system

Dubai bourses testing new settlement systemIn order to be able to win the status of MSCI emerging market, the Dubai Financial Market is testing the waters of a new settlement system. The information was given by the CEO of Nasdaq Dubai, Jeff Singer.

He also confirmed that there is not going to be any kind of regional unrest because of the new system.

MSCI said that they are going to make the announcement of the same by June. There it would also tell if they want to upgrade the UAE and Qatar from the 'frontier markets' category to a more advanced one. It is needed if they want the bourses to have multibillion dollar liquidity and also if they are able to drive the index of fund investments.

This is for the second time that MSCI has asked the domestic bourses in USE to go for change. These are double accounting structure and also making special custody for trading of accounts. Jeff said in his statement that the DvP model, which is getting currently tested, is going to be implemented finally.

However, he also reiterated the point that it was a decision of the exchange and not MSCI.